Re: Re: USA parts and China parts

Posted by Steve - IN on August 18, 2003 at 18:28:41 from (12.222.30.13):

In Reply to: Re: USA parts and China parts posted by KURT(mi) Strong Dollar,w on August 18, 2003 at 17:55:56:

Kurt,
You're absolutely right about the under valued Chinese currency. If it floated to free market levels, Chinese goods would become 30 to 40 per cent more expensive overnight. As they don't buy much from the West, and they're bringing in lots of money anyway, and all they need to do is shoot anyone who wants a better life/better income -- there's little pressure for them to let the currency float.

The politicians here aren't all totally stupid (well, most of them anyway). All of us are consumers of some sort. Higher tariffs mean 100 per cent of us pay higher prices for nearly everything. As only about 20 to 30 per cent of us are truly producers (the rest being govt. workers, lawyers, and other drags on the economy), raising tariffs would benefit far less than half the population. So the numbers are simple; do you wanna go after 100 per cent of the vote, or 30 some per cent of the vote?

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